Search Here

Live: Centre launches UDAN for cheap airfares

Meanwhile, HCL's net profit for the second quarter has gone up by more than 16 per cent.

Find all the business and economy related news here today.

The Centre launched its scheme for cheap airfares for regional flights, known as UDAN, in New Delhi on Friday. Speaking at the event, MoS Jayant Sinha said the government will get up to "40 seats in an aircraft subsidised."

HCL Technologies promoted COO C. Vijayakumar as president and CEO on Friday. The company also reported a Q2 net profit with an increase of 16.7 per cent.

Live updates:

12.20 p.m.: At the time of marriage, you don't fix the date of divorce, says Civil Aviation Minister Ashok Gajapathi Raju at the UDAN launch.

12.15 p.m.: HDFC raises Rs 500 crore via masala bonds

In July this year, in the first ever masala bond issue, HDFC had raised Rs 3,000 crore through rupee-denominated bonds that got over-subscribed by 4.3 times. Read more

12.02 p.m.: How will airlines be selected under UDAN? The Ministry of Civil Aviation has a handy chart.


12 noon: Former Google executive Amit Singhal joins Paytm’s Board

Mobile payment and commerce company Paytm, announced that Amit Singhal, the former Head of Search at Google, is set to join Paytm’s board of directors. A Google Fellow and former head of the core ranking team, he served for over fifteen years in the company.

Mr. Singhal joined Google in 2000 and has been instrumental in shaping Google Search to seamlessly work across desktop, mobile and other devices. Since retiring from Google, he has focused on philanthropic efforts through the Singhal Foundation. He is also an active investor and advisor to various companies. - Pradeesh Chandran

11.57 a.m.: KSRTC, BEST to use recycled cooking oil from KFC as biodiesel

Restaurant chain, KFC India has joined hands with Advait Biofuel Ltd, suppliers of used cooking oil based biofuel to recycle used cooking oil from into biodiesel.

According to a press release from KFC, Advait, a ISCC certified used cooking oil collector will collect used cooking oil from KFC restaurants in Andhra Pradesh and Telangana to convert into biodiesel.

“With this collaboration KFC India has become the first restaurant brand in the country to attempt something of this nature and scale. The produced biodiesel will be used domestically by State Road Transport Corporations in Karnataka (KSRTC) and Mumbai (BEST),” the company release added. -Pradeesh Chandran

11.55 a.m.: Regional flights, less than an hour's flight, will have airfares capped at Rs. 2,500.

11.45 a.m.: Here is an Aviation Ministry explainer on how UDAN works:

11.40 a.m.: We wil jump start regional aviation market in the country, says Mr. Sinha.

11.36 a.m.: We have made flying affordable by lowering costs across the board, says Jayant Sinha at the press conference announcing the launch of the UDAN scheme. "Up to 40 seats will be subsidised by us in an aircraft to provide cheap airfares."

11.35 a.m.: The government launches the UDAN scheme.

11.30 a.m.: Morgan Stanley says that with weakening demographic trends, productivity growth will take on a more important role in driving overall GDP growth outcomes. It, however, adds that the problem is that productivity growth has already been weak and an ageing workforce will have a negative effect on such growth.

"With labor inputs slowing, the importance of productivity in driving overall growth has increased," says the latest report by the global financial major. - Ashish Rukhaiyar

11.15 a.m.: Edelweiss maintains buy rating on Reliance Industries. It believes structural revival in downstream margins will double profits over six years and raise RoE by 400bps. It has a target price of Rs.1,401 — highest on the street. - Ashish Rukhaiyar

10.36 a.m.: Sensex slips post RIL earnings

The 30-share index, which had gained 145.47 points in the previous session, dropped by 94.24 points, or 0.34 per cent, at 28,035.60, with oil and gas, metal, banking, PSU and capital goods sectors bringing about the fall. Read more

10.17 a.m.: Rupee extends losses, down against dollar

Moreover, the U.S. dollar’s gains against some currencies overseas and a lower opening in the domestic equity market put the rupee on the back foot, forex dealers said. Read more

10.16 a.m.: Private fund raising by Indian internet companies aggregated to $784 million in the second quarter of FY17, sharply down from over $2.6 billion raised in the same period last year, foreign brokerage firm Jefferies estimates, highlighting the difficult funding environment.


The firm which tracked deals of over $5 million, also said that decline is much sharper in rounds above $100 million. For instance there was only 2 deals over $100 million in September 2016, when compared to 6 deals in the comparable period last year. - Sanjay Vijayakumar

10.15 a.m.: Cement companies may have to increase prices, due to higher pet coke prices. Pet coke is one of derivatives of crude oil which is used to meet power and fuel needs of a cement plant. It forms 30-40 per cent of power and fuel components of cement companies.

According to brokerage firm Motilal Oswal, average fuel prices in October (both imported coal and domestic petcoke) have increased by 43% from the first quarter of FY17 average. The firmness in global fuel prices is due to lower production in China since March 2016, the research firm said. According to the firm, cement companies need to take price hikes of 2-4% from first quarter levels to retain profitability. The firm sees price hike coming in November and December. - Sanjay Vijayakumar

10.15 a.m.: HCL Tech Q2 net profit grows 16.7 p.c. to Rs. 2,014 crore

Its revenues for the reported quarter were up 14.1 per cent to Rs. 11,519 crore, from Rs. 10,097 crore in the year-ago period, as per US GAAP accounting norms. Read more

10 a.m.: Ahead of the New Zealand Prime Minister's visit to India the India New Zealand Business Council’s (INZBC) head of Government relations Wenceslaus Anthony spoke on the upcoming visit.Read more

9.45 a.m.: Reliance Industries shares are down over 1 per cent at Rs. 1,076.40 in opening trade. Shares of ICICI Bank, Axis Bank, HDFC Bank and State Bank of India are also trading down. - Sanjay Vijayakumar

9.30 a.m.: HCL shares trading up 3 p.c. on buying out U.S. engineering and design services firm

HCL Technologies shares opened up 1.34 per cent at Rs. 826 and is trading up 3.33 per cent at Rs. 842.4 as it agreed to acquire US based engineering and design services firm Butler America Aerospace, LLC (Butler Aerospace) for cash consideration of $85 million or Rs. 567 crore. - Piyush Pandey

9.15 a.m.: Indian telecom companies' credit profile to weaken: Fitch

Fitch Ratings expects the Indian telcos' credit profiles to weaken amid intense competition and high capex requirements in 2017. Pricing power could be eroded as incumbents retaliate against new entrant Reliance Jio's cheaper data tariffs and free voice and text.

The top-four's — Bharti Airtel Limited, Vodafone India, Idea Cellular and Rcom/Aircel — revenue market share will rise to around 84 per cent (2016: 79 per cent) as they gain market share from smaller telcos; we expect Reliance Jio to gain less than a 2 per cent revenue market share in 2017 but to act a major price-disruptor to the sector, said the Fitch report. - Piyush Pandey

9.12 a.m.: Goldman Sachs on Reliance Jio: Subscriber additions continue to remain strong between 0.6 million and 1.1 million subscribers per day. The brokerage said its telecom team does not expect all the subscribers to continue post the free period although management indicated that most users are likely to continue as (1) tariffs are lower, (2) data speed is better, and (3) voice is free. - Sanjay Vijayakumar

9.10 a.m.: Mid-tier IT services company Mindtree will announce its second quarter results today.

The Bengaluru-based company has revised its July-September quarter guidance downward due to cross-currency movements and project cancellations. - Pradeesh Chandran

9 a.m.: The government's scheme for pricing flight fares below Rs. 2,500 for flights that don't take more than hour to unserved or underserved airports, called UDAN, is to be announced today.

8.50 a.m.: HCL Technologies promotes COO C. Vijayakumar as president and CEO, effective October 20. The current president and CEO Anant Gupta has decided to leave the company to pursue personal interests outside of HCL, it said in a stock exchange filing.

Meanwhile, HCL Technologies agreed to buy Butler America Aerospace, LLC (Butler Aerospace) for $85 million. The acquired firm is a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers, it said in a stock exchange filing. The proposed acquisition will exclude the staffing business of Butler America Inc. HCL said acquisition will bolster HCL’s capabilities in the space and access to clients with large R&D spends. Butler Aerospace had revenues of $85.4 million for the year ending Dec 31, 2015 at EBIT of 12.2 per cent. - Sanjay Vijayakumar

8.45 a.m.: New product launches to watch out for today:

- The Mahindra e20Plus electric car: The e20 car was launched in the UK in June at a price of £12,995. Concerns over climate change rising and regulations becoming more stringent are the reasons behind the creation of this car, Mahindra Group chairman Anand Mahindra had said.

- Samsung Galaxy C9 phone

8.37 a.m.: Stock to watch: Shares of Reliance Industries would be in focus, after it reported strong results yesterday. Would be interesting to see analysts take on the stock post earnings and how they factor in the Jio impact. - Sanjay Vijayakumar

8.34 a.m.: Retail investors will have an opportunity to buy shares of State-run construction company NBCC India Ltd. The government is selling 15 per cent stake in the firm. Retail investors, for whom 18 million shares or 20 per cent of the offering has been reserved, can bid today. Retail investors may take cue from strong interest shown by institutional investors. On Thursday, Institutional investors had bid for nearly 110.82 million shares, or one-and-a-half times the 72 million shares reserved for them. The floor price for the offer was set at Rs. 246.50 a share. The government is set to raise Rs. 2200 crore from the sale, post which its stake in the firm will fall to 75 per cent from 90 per cent. - Sanjay Vijayakumar

8.32 a.m.: Wipro, India’s third biggest software exporter would be reporting its Q2 results today. Investors would be keenly watching the commentary on demand environment and pricing. Wipro’s bigger rivals TCS and Infosys have spelt out a bleak outlook. Infosys had cut its full year revenue guidance for the second time in three months due to business uncertainty. TCS, which does not give any quarterly or yearly guidance, has pointed out to pricing pressures and uncertain macro environment.

Analyst expectation on Wipro result: Kotak Securities expect the firm’s IT services EBIT margin decline 120 basis points due to impact of wage hike and cross currency headwind and revenue to decline 2 per cent sequentially to Rs. 13428.4 crore. It expects the company to guide 0-2 per cent revenue growth in December 206 quarter on a constant currency basis. - Sanjay Vijayakumar

8.30 a.m.: In the news today:

- U.S. asks India to liberalise retail, financial services

The U.S. has asked India to consider relaxing local sourcing requirements in single brand retail trade as well as liberalising financial services sector, while New Delhi wanted Washington to expedite the conclusion of negotiations on a proposed bilateral social security pact for the benefit of Indian IT workers. Read more

- WTO members’ commitment to development unchanged: Roberto Azevêdo

Referring to the projected world trade growth of just 1.7 per cent for 2016, the lowest rate of expansion since the financial crisis, the WTO Director General said, “We should be looking for policies that will boost trade growth while also promoting a more inclusive trading system…” Read the full interview

- Banks cut limit, replace cards to plug data loss

If you have got a text message from your bank to change your PIN (personal identification number) and you have not done it so far, chances are your withdrawal limit from an automated teller machine (ATM) could be cut. Read more

- Reliance Industries’ Q2 net declines 23% as refining margins dip

Consolidated net profit in July-September at Rs.7,206 crore, or Rs. 24.4 per share, was 22.9 per cent lower than Rs.9,345 crore, or Rs.31.7 per share, earnings in the same period a year earlier. After excluding the exceptional item, the net profit was up 43.1 per cent. Read more

- Centre to wipe out rust with galvanised steel

The Centre is considering a proposal to mandate galvanisation of steel in sectors such as automobile, construction and infrastructure in a bid to build corrosion-resistant vehicles and buildings. Read more


Image Source Thehindu.com

WhatsApp sharing is currently supported by iOS and Android. This button will figure out the current platform by itself and only shows up on supported devices!